There are quite a few issues to consider when it comes to poultry farming and insurance. In this blog our goal is to give you, the farmer, a little insight into the insurance side of poultry farming.
One of the first things for you to know is about
Insurance company availability:
In June 2019 the market tightened due certain carriers not taking any “new” business. Companies leaving the market is not good for the consumer because competition is what keeps rates down. Insurance companies will cease writing policies if the see no way to be profitable on a book of business. This leads us to our second point.
Complying with inspection:
We know that it can get aggravating when an inspector seems to be picky on every little detail of your farm, and at times, you can/should challenge their findings. However, the purpose of the inspection is to mitigate future catastrophic loss that you might have over looked or did not know about. If something can be fixed now to avoid a large problem later, inspectors will choose to have it fixed now. Problems that are not addressed can cause major loss across many farms in an area. Large losses prompt companies to exit the market place!!! So, it is important to try to stop losses before they occur, which in turn helps keep rates low for everyone.
Loss of Income:
Ask your agent the right questions. Here are a few to consider:
- Am I covered if my generators fail to come on in a power outage?
- What if a tornado hits the integrator’s processing plant and I cannot get rid of my birds and they all die; Does my insurance cover that?
- What if my flock gets LT or Avian Flu?
- What if my integrator’s facility gets LT or Avian Flu and I can’t move my birds?
- What if a road washes out and I cannot get feed to my birds and they all die; Is that covered?
The old saying “You get what you pay for” is still very applicable in today’s poultry insurance market. Many of the current companies writing insurance in Mississippi do not cover the above mentioned scenarios.
There are plenty of other topics to cover on poultry farm insurance, so these are just a few to get us started! If you have any questions, we would be glad to address any concerns you have on your current policy. Don’t hesitate to call or e-mail us!